ABS is as easy as 1-2-3! Is Activity-Based Costing right for you?

In the hit NBC show This is Us, a married couple plays a game called "What's the worst that can happen?" In this game, they share their deepest fears of the worst outcomes from their current situation. Afterwards, they feel better knowing the worst possible scenario is often also the least likely. It's hard to prepare for the unexpected. Cars break down, AC units break, and sometimes we just really turn our finances on their head. Enter the Emergency fund, or as BudgetsAreSex

Last week, we introduced a few financial ratios that you can use on your balance sheet and income statement. This week, we'll add to that list! Gross Margin Gross Margin = Gross Profit / Net Sales When You Use It: The Gross Margin Ratio gives you a percentage of sales dollars available after you've deducted the cost of merchandise. If yours looks particularly high or low, remember that this varies by industry and by company! Profit Margin (after Tax) Profit Margin = Net Incom

Our three-week workshop "finance Fundamentals for your Small Business" presented by Practical Accounting Solutions is coming up soon! Here are the details What You'll Learn: Starting a small business can be a challenge if you're not familiar with managing company finances! Led by Adam Knihtila, owner of Practical Accounting Solutions, you'll learn the basics of how to keep track of your finances, how to budget for your company, and the basics of employee finances and payroll.

Bookkeeping. For some business owners, bookkeeping may feel very tedious or challenging to keep up with. For others, this type of financial organization is right up their alley. No matter which mentality you have, all business owners must keep these records in order to plan ahead financially, ensure your costs and profits are accounted for, and to plan for tax season! Read on below for some key terms to know with Bookkeeping! Photo by Thought Catalog on Unsplash 1. Cash vs Ac

We are proud to announce a three-week workshop this may called "finance Fundamentals for your Small Business" presented by Practical Accounting Solutions! Here are the details When: May 7 May 14 May 21 Where: Holiday Inn Express & Suites Fredericksburg What You'll Learn: Starting a small business can be a challenge if you're not familiar with managing company finances! Led by Adam Knihtila, owner of Practical Accounting Solutions, you'll learn the basics of how to keep track

Penny stocks have been around since the early 1900s, but you might have learned most of what you know from the popular Leonardo DiCaprio film The Wolf on Wall Street. Today we break down what penny stocks are and some things to remember when investing in penny stocks. Photo by Jonathan Brinkhorst on Unsplash a brief History of Penny Stocks Since the early 1900s, companies have broken down their stock and sold it for mere pennies. Today, especially with advancements of techno

An audit can be stressful for any business owner, and even more so for those that bend the rules or do not keep organized business books. Today, we address 5 common factors the IRS considers when auditing small businesses. We also always recommend working with an accountant to help you navigate your audit! photo from wix.com 1. Does your business handle primarily cash? If so, ensure you have a consistent and organized way to record transactions if they occur. Ensure you do no

We've discussed in previous posts how to start teaching your child financial responsibility through a bank account, but what about their credit score? Credit scores have such a huge impact on a child's financial future, and you can help them establish and build their credit from early on in preparation for future student loans, car loans, or other future financial endeavors! photo from wix.com Add your child as an authorized user on your credit card While taking out a credit

Whether you're expecting, a new parent, or have been a parent for years, opening a bank account is a great tool to help your child's financial future. This week, we tackle benefits of opening a bank account for your child and how it can benefit your family in the long run. photo from wix.com Opening an account for the future You can open a savings account for your child that you can later turn into a checking account once their older. Talk to your local bank (we recommend fi

Credit cards are useful for multitudes of financial needs in today's world. Young adults learn about managing money and building their credit through credit cards. As we get older and bills get higher, we use credit cards to pay bills, manage large expenses, and more. However, what do you do when you rely too much on credit cards, and now you find yourself stuck in overwhelming debt? Read on to find 5 practical ways to manage your credit card debt and pay it off. photo from w

Investing is a long-term strategy of making more money and expanding your financial portfolio. It's also a personal choice on how you choose to invest: the stock market, bonds, mutual funds, new ventures, and many more! However you choose to invest, here are 3 reasons why investing is a great opportunity in expanding your financial gains! photo from wix.com 1. Be a Part of Something new There are approximately 543,000 new businesses that start each month according to Forbes.

Hiring an accountant for your personal finances may seem like an unnecessary expense, but often times your accountant will save you more money than the cost of hiring them. By hiring a professional to manage your finances, you'll be able to rest easy during tax season and beyond. Photo from wix.com tax season While it can be simple to use tax preparation software to prepare your own taxes, about 21% of paper tax returns have errors according to the IRS. This isn't necessarily

Accountants do more than just the basics of accounting. At the end of the day, they are financial experts that can save you and your small business money and time so your can focus on growing your company! photo from wix.com Many Accountants are Tax experts Many accountants are up-to-date and trained to learn the nuances of changing tax laws. These laws are confusing at best, so hiring a tax professional can help you understand changes and utilize them to your best interest.